Economic valuation of hydroelectric dams' safety

Abstract

This paper aims to develop an economic approach that enables electricity generation companies to analyze and quantify the economic gains of complicated activities particularly the safety of hydroelectric dams. The method is based on calculating the costs avoided due to the implementation of safety mechanism. The specification of this method is founded on a solid literature regarding the economic assessment of the monetary value of complicated services. The results of this paper highlight the importance and the significant influence of safety activities in reducing costs, reaching approximately 26 million Euros. The results also shed light on the importance of the safety device to fight fatal accidents and ensure public security.

Keywords

• dams
• hydraulic safety
• financial valuation
• cost avoided method